There is an endless amount of benefits that accompany working with motivated Real Estate Investing sellers. For starters, motivated real estate sellers, regardless of their motivation, are in need of a real estate investor and are therefore usually willing to close a deal very quickly. Real Estate Investors are always on the search for properties in need of a little Tender, Love, and Care – since those homes are the ones that sell for under market value.
Now that we’ve determined the value of a motivated seller, it is time to dive into how to attract motivated sellers.
Some of the obvious ways to attract motivated sellers include:
Buying a property in all cash
Buying the property “as-is”
Promising to close the deal fast
Eliminating closing costs and realtor fees
Cash is king when it comes to working with sellers who need to sell their property as fast as possible due to job loss, divorce, or other tragic reason. In most scenarios, a seller in an unfortunate situation does not want to worry about hiring a realtor or fixing up his or her property, which results in a Real Estate Investor getting a tremendous deal on the property.
Cost Efficient Techniques To Attract Motivated Sellers
If you want to attract qualified motivated sellers, it is absolutely essential to appeal to his or her emotions. In a lot of scenarios, if a seller needs to get rid of a property as soon as possible, it is usually because he or she is going through a difficult time. A Real Estate Investor must therefore be extremely cautious when communicating with these types of sellers in order to not offend them in one way or another.
The best way to appeal to a motivated seller’s emotions is by being as transparent as possible. A seller in distress wants to be able to trust the investor they are working with and the only way to build trust is through honesty. As a Real Estate Investor, you should explain exactly what you do and why you do it. Something along the lines of, “I buy properties just like yours in all cash as a way to make a living and provide for my family” shows the seller you are human.
The seller will feel very comfortable, because he now knows that you buy properties in the same condition as his, and you are just doing what your job requires. The last thing you want is for a seller to think that you are only in a deal for the money. The real estate investing business is a people business after all, which means you have to be ready to listen to your clients vent about their lives. However, as long as you are relatable, attentive, and trustworthy, you will have customers telling their friends and coming back for more.
Once you’ve perfected the art of appealing to one’s emotions, you must delve into exactly how to find and attract motivated seller leads. There are more ways than one when it comes to finding motivated sellers. Of course, an investor can utilize direct mail or bandit signs to target certain individuals – i.e. FSBO properties (for sale by owner), or homeowners who are behind on tax payments – but there are certainly free ways to attract motivated sellers as well:
While Craigslist may not be the clear number one choice for Real Estate Investors to pursue deals, it is a great – and free – option that our Real Estate Investing Strategist highly consider. Craigslist allows Real Estate Investors to reach a large audience with a small amount of effort or capital.
This is beneficial because the only clients that will contact you are those who truly need your services. No one will respond to your ad if they are not an actual motivated seller. If you choose to create a Craigslist ad to reach motivated sellers, make sure to be as straightforward and direct as possible. In the subject line of your ad, it should be clear exactly what you want from the respondent.
Something along the lines of “I Buy Houses In Cash”, could not be any more “matter-of-fact”. You want your potential client to understand that, if they decide to work with you, they will have the option to receive all cash – which is very attractive to motivated sellers. It is also great if you include your contact information, description of job, and self report in your ad as well.
Facebook ads are very similar to craigslist ads when it comes to motivated sellers; except for the fact that if you use Facebook, you have the option to boost your ads with a variety of paid options. If you already have an established Facebook account, your ad is likely to reach a variety of viewers. However, if your Facebook ad reach is not attaining a number you are pleased with, you can pay to make your ad reach a greater number of individuals.
A paid Facebook ad allows users to target certain individuals, whatever the criteria may be. Maybe you are targeting males age 25-40 (in hopes to reach males who have just gone through a separation or divorce) well, Facebook allows you to send that ad to those individuals. There are also a handful of “groups” Real Estate Investors can join, as Facebook users, in order to reach a wider assortment of potential clients. If you are just starting off as a Real Estate Investor and looking to expand your client search, consider Facebook as a viable course of action.
For Free (Or ‘Kinda’ Free)
Facebook and Craigslist are both free ways to find motivated sellers, but there are other free, or almost free, methods Real Estate Investors can practice that quite often go unseen. Consider targeting out-of-state homeowners, as their level of motivation is generally extremely high, and because there is less competition among Real Estate Investors. Most investors will send direct mail or emails to FSBO homeowners, absentee owners, foreclosure or pre foreclosure homeowners, etc., and often forget about out-of-STATE owners.
An out-of-state owner is less likely to care about the upkeep of a property, meaning the property is more likely to be “junker” that will be sold at a lower price. If you want to target out-of-state owners for free, go to your county’s appraisal district website and pull up property records one-by-one to see if the owner lives out of state.
Regardless of whether or not you are a seasoned investor or just starting out, these unconventional ways to attract motivated sellers will help you to dominate your competition.
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